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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: An easier way... Posted by dond on March 02, 2010 at 4:36 AM In Reply to: Re: An easier way... posted by Joanna M on March 01, 2010 at 2:32 PM : Buyer: : Thank you so much for sharing your knowledge. I already have good liability insurance for each one : of them. Can you explain what's the 5 million umbrella policy? I know HOA(home owner's association) has umbrella policy for all its unit. : Is it similar to that? So your umbrella policy will cover each property as long as the total annual loss is within 5M? : Thanks again! : Joanna : : : HI, Rick: : : : Thank you for your advice. I did read through Ward's introduction of title holding trust. : : : Title holding trust will detach property from a person's name. So if someone is sued elsewhere, his/her real estate holding won't be affected. : : : My concern is : : : if a landlord is sued by a tenant, he/she has to come out of the title holding trust : : : to face it. Title holding trust helps you hide, but will not truly protect you after lawsuits happen. : : : If you put all your rentals(under different title holding trust) into one LLC and jack up your equity value, all that value can be harmed by one lawsuit. : : : So, in order to limit the damage to that specific property,you still have to separate each one of them. : : : Any good suggestions? : : : Thanks in advance! : : : Joanna : : From a buyer and holder of real estate. : : I place larger rentals (10+ units) in different LLCs for each property. I place all the smaller income properties and SFR rentals in 1 LLC. I obtain comprehensive insurance for each property with the highest liability possible and an umbrella policy of 5 million over that, I make needed repairs in a timely manner, I sleep fine at night. : : : : : : : Not to contradict your advisor, why not discuss the following tactic: : : : : Use one LLC to act as trustee and create a separate title holding trust for each property. : : : : You could even hire a third party with an existing LLC to act as the trustee for probably less that the formation costs and annual franchise tax fee; maybe 200-300/yr. : : : : What I suggest you do is to learn how to use these techniques to your benefit. Once you know how to create each trust, it's easy, quick and cheap. : : : : Jach Shea and his Florida partner have a book on this topic. Also, our forum host Ward Hanigan teaches a half day, one-on-one course that will answer all of your detailed questions. Check it out on the side bar to the left under 'hands-on' training. : : : : Hope this helps. Your individual policies probably cover you (or your LLC) to a maximum of $1M per property. An umbrella policy covers ALL of your properties from $1M to the umbrella limit of say $5M. An umbrella policy will probably cost just a few hundred dollars. Dond Follow Ups: Re: An easier way... Joanna M 12:41 AM, 03/03/10 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Buyer: : : Thank you so much for sharing your knowledge. I already have good liability insurance for each one : : of them. Can you explain what's the 5 million umbrella policy? I know HOA(home owner's association) has umbrella policy for all its unit. : : Is it similar to that? So your umbrella policy will cover each property as long as the total annual loss is within 5M? : : Thanks again! : : Joanna : : : : HI, Rick: : : : : Thank you for your advice. I did read through Ward's introduction of title holding trust. : : : : Title holding trust will detach property from a person's name. So if someone is sued elsewhere, his/her real estate holding won't be affected. : : : : My concern is : : : : if a landlord is sued by a tenant, he/she has to come out of the title holding trust : : : : to face it. Title holding trust helps you hide, but will not truly protect you after lawsuits happen. : : : : If you put all your rentals(under different title holding trust) into one LLC and jack up your equity value, all that value can be harmed by one lawsuit. : : : : So, in order to limit the damage to that specific property,you still have to separate each one of them. : : : : Any good suggestions? : : : : Thanks in advance! : : : : Joanna : : : From a buyer and holder of real estate. : : : I place larger rentals (10+ units) in different LLCs for each property. I place all the smaller income properties and SFR rentals in 1 LLC. I obtain comprehensive insurance for each property with the highest liability possible and an umbrella policy of 5 million over that, I make needed repairs in a timely manner, I sleep fine at night. : : : : : : : : : Not to contradict your advisor, why not discuss the following tactic: : : : : : Use one LLC to act as trustee and create a separate title holding trust for each property. : : : : : You could even hire a third party with an existing LLC to act as the trustee for probably less that the formation costs and annual franchise tax fee; maybe 200-300/yr. : : : : : What I suggest you do is to learn how to use these techniques to your benefit. Once you know how to create each trust, it's easy, quick and cheap. : : : : : Jach Shea and his Florida partner have a book on this topic. Also, our forum host Ward Hanigan teaches a half day, one-on-one course that will answer all of your detailed questions. Check it out on the side bar to the left under 'hands-on' training. : : : : : Hope this helps. : Your individual policies probably cover you (or your LLC) to a maximum of $1M per property. An umbrella policy covers ALL of your properties from $1M to the umbrella limit of say $5M. An umbrella policy will probably cost just a few hundred dollars. : Dond [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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